Esha Dey
Mon, August 28, 2023
(Bloomberg) -- Unprofitable Vietnamese electric-vehicle maker VinFast Auto Pte Ltd. is now worth more than the likes of Goldman Sachs Group Inc. and Boeing Co.
VinFast shares closed up 20% at $82.35 Monday, marking a blistering 688% since its market debut Aug. 15. It is currently worth about $190 billion, compared to valuations of $111 billion for Goldman and $137 billion for Boeing. That leaves it bigger than half of the companies in the Dow Jones Industrial Average — and about 10 times the size of Walgreens Boots Alliance Inc.
VinFast’s torrid run comes as the broader US equity market has cooled, suggesting animal spirits haven’t been entirely quelled. The company has captured the attention of retail traders targeting EV makers, while its small number of shares outstanding also helps to amplify moves. Options on the stock also began trading Monday, giving traders the opportunity to make leveraged bets on the rally.
This advance “shows that there’s still plenty of froth in the marketplace,” said Matthew Maley, chief market strategist at Miller Tabak + Co. Maley added that the S&P 500 Index’s “only” 4% decline from its summer highs has not incited a lot of fear among investors. “It will take something more like a full-blown correction of 10% or so to push some real fear back into the marketplace.”
Data from Vanda Research shows individual traders’ interest in the stock started picking up last week. The cohort has in the past helped fuel surges in the likes of Nikola Corp. and Rivian Automotive Inc.
While extreme valuations are not unusual for companies toiling in new technologies — see the AI frenzy — VinFast’s eclipsing $200 billion in a just 10 trading days stands out. In comparison, EV industry leader Tesla Inc. took more than 3,600 sessions to hit that mark, while current AI-darling Nvidia took over 7,700.
Meanwhile, VinFast options started trading Monday, with $100 calls — allowing the buyer to purchase shares if they rise above that level by Sept. 15 — the most actively traded.
--With assistance from Tom Contiliano.
Bloomberg Businessweek
Vinfast rallies on after becoming world's third-most valuable automaker
Reuters
Mon, August 28, 2023
(Reuters) -Shares of Vietnamese electric-vehicle maker Vinfast surged 21% on Monday, extending a rally from last week that more than quadrupled its market value to $160 billion.
The company made a blowout debut on Wall Street this month and has quickly grown in valuation to become the third-most valuable automaker - only behind Tesla and Toyota.
But Vinfast's small amount of publicly available shares has made the stock prone to volatility, with shares jumping or slumping more than 14% in 11 of the past 12 sessions.
The stock was on track to add nearly $33.6 billion to its market capitalization, based on a share price of $83.33.
Vinfast's shares were among the most actively watched on Stocktwits, a popular website with retail investors.
Vinfast is almost entirely controlled by Pham Nhat Vuong, Vietnam's richest man and founder of parent conglomerate Vingroup, with a stake of about 99.7%, according to a filing.
Despite the market enthusiasm, Vinfast faces a long road before it can start competing meaningfully with Tesla and legacy automakers that are pouring billions of dollars to grab a share of the EV market.
Only 137 Vinfast EVs were registered in the United States through June, according to S&P Global Mobility.
The firm is also entering the U.S. and European markets at a time when EV demand is slowing and Tesla has waged a price war to defend its dominance.
Vinfast expects to sell as many as 50,000 electric vehicles this year, compared with Tesla's projection to deliver 1.8 million cars.
To drive sales, Vinfast is breaking away from the direct-to-consumer approach used by Tesla and turning to dealers. The company is also building a $4 billion factory in North Carolina.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)
Reuters
Mon, August 28, 2023
(Reuters) -Shares of Vietnamese electric-vehicle maker Vinfast surged 21% on Monday, extending a rally from last week that more than quadrupled its market value to $160 billion.
The company made a blowout debut on Wall Street this month and has quickly grown in valuation to become the third-most valuable automaker - only behind Tesla and Toyota.
But Vinfast's small amount of publicly available shares has made the stock prone to volatility, with shares jumping or slumping more than 14% in 11 of the past 12 sessions.
The stock was on track to add nearly $33.6 billion to its market capitalization, based on a share price of $83.33.
Vinfast's shares were among the most actively watched on Stocktwits, a popular website with retail investors.
Vinfast is almost entirely controlled by Pham Nhat Vuong, Vietnam's richest man and founder of parent conglomerate Vingroup, with a stake of about 99.7%, according to a filing.
Despite the market enthusiasm, Vinfast faces a long road before it can start competing meaningfully with Tesla and legacy automakers that are pouring billions of dollars to grab a share of the EV market.
Only 137 Vinfast EVs were registered in the United States through June, according to S&P Global Mobility.
The firm is also entering the U.S. and European markets at a time when EV demand is slowing and Tesla has waged a price war to defend its dominance.
Vinfast expects to sell as many as 50,000 electric vehicles this year, compared with Tesla's projection to deliver 1.8 million cars.
To drive sales, Vinfast is breaking away from the direct-to-consumer approach used by Tesla and turning to dealers. The company is also building a $4 billion factory in North Carolina.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)
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